Shares of technology companies pulled back, weighing on the S&P 500 and Nasdaq Composite.
Traders tend to pile into tech stocks when economic concerns mount, betting those shares can deliver growth. When the outlook brightens, they often rotate into companies that can harness themselves to a strong economy.
Among individual stocks, Apple shares fell about 1% after the company on Monday briefly touched $3 trillion in market value before closing below that threshold.
China has passed two new rules regulating technology companies' overseas activities and use of algorithms, marking the latest step by Beijing to rein in the country's massive internet sector. The country's top internet watchdog, the Cyberspace Administration of China, said it and several other authorities passed a revised version of the Cybersecurity Review Measure that will subject digital-platform operators with more than one million users to a cybersecurity review if they plan to list overseas. The administration also passed a rule regulating how tech companies use recommendation algorithms.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
01-04-22 1723ET
